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Weekly Market Recap: April 1, 2024

Weekly Market Recap: April 1, 2024

Posted April 1, 2024 at 10:00 am
J.P. Morgan Asset Management

The week in review

  • New home sales rose less than expected to 662K
  • Case-Shiller home prices rose 6.6% y/y
  • 4Q23 q/q annualized GDP revised upwards to 3.4%

The week ahead

  • Job openings
  • Nonfarm payrolls
  • Unemployment rate

Thought of the Week

In 2023, stocks and bonds both rallied. The first quarter of 2024, however, saw stocks reaching new heights, while bonds experienced a modest downturn, as the market scaled back its rate cut expectations following surprisingly strong economic data.

As shown in the chart of the week, U.S. large cap stocks continued their dominance, outshining other asset classes with a 10.6% return. However, unlike last year, the rally was relatively broad-based as all sectors, save one, contributed to the gains. Meanwhile, small caps, which lean more toward value stocks, posted a relatively modest 5.2% gain. Internationally, developed markets (DM), with a 5.8% return, outpaced their emerging market (EM) counterparts. Within DM, Japan’s export-driven stock market and European equities both reached record highs, driven by the Yen’s multi-decade lows and excitement around innovations in the healthcare sector, respectively. On the other hand, EM equities were up by a slight 2.2%, as a surge in the dollar took a bite out of impressive gains in Taiwan, Korea and India, while China’s continued economic challenges manifested in lackluster market performance.

Within fixed income, less rate-sensitive high yield bonds gained 2.1% on the back of further spreads compression, while the broader market declined 0.8%, as a rise in yields weighed on bond prices. In the alternatives space, commodities rebounded, buoyed by a broad uptick in prices, whereas rate-sensitive REITs came under pressure and ended the quarter down 1.3%. Lastly, cash, with a 1.3% return, lagged many asset classes while still carrying a reinvestment risk amid potential rate cuts.

1Q24 asset class returns

Chart of the Week: Source: FactSet, J.P Morgan Asset Management.
Thought of the week: Source: FactSet, J.P Morgan Asset
Management.

Originally Posted April 1, 2024 – Weekly Market Recap

Past performance does not guarantee future results.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be appropriate for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

The Market Insights program provides comprehensive data and commentary on global markets without reference to products. Designed as a tool to help clients understand the markets and support investment decision-making, the program explores the implications of current economic data and changing market conditions.

The J.P. Morgan Asset Management Market Insights and Portfolio Insights programs, as non-independent research, have not been prepared in accordance with legal requirements designed to promote the independence of investment research, nor are they subject to any prohibition on dealing ahead of the dissemination of investment research.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature
or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment.

Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.

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Copyright 2024 JPMorgan Chase & Co. All rights reserved.

©JPMorgan Chase & Co., April 2024.

Unless otherwise stated, all data is as of April 1, 2024 or as of most recently available

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Disclosure: J.P. Morgan Asset Management

Past performance does not guarantee future results.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

The price of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. International investing involves a greater degree of risk and increased volatility. There is no guarantee that companies that can issue dividends will declare, continue to pay, or increase dividends. Investments in commodities may have greater volatility than investments in traditional securities, particularly if the instruments involve leverage.

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J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc. and JPMorgan Asset Management (Canada) Inc.

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Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from J.P. Morgan Asset Management and is being posted with its permission. The views expressed in this material are solely those of the author and/or J.P. Morgan Asset Management and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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